Govt raises EPF eligibility limit to ₹25,000 salary per month:More citizens will be able to get benefit of PF scheme

Companies will now have to bring employees earning salaries of up to ₹25,000 under PF coverage. The Union Cabinet on Wednesday raised the mandatory basic salary limit for EPF and EPS from ₹15,000 to ₹25,000 per month. Union Minister Ashwini Vaishnaw said the move would benefit 51 lakh employees. The limit was last raised from ₹6,500 to ₹15,000 in September 2014. Now, 12 years after this major change, 51 lakh employees with basic salaries between ₹15,000 and ₹25,000 will also directly benefit from PF savings and pensions. In simple terms, the ₹25,000 mandatory coverage salary limit in EPF means: Note: This limit primarily applies to Basic + DA, not to the total CTC or gross salary. Let’s understand this through simple examples Example 1: Salary within the limit Example 2: Exactly at the limit Example 3: Above the limit (new joining) Amit’s basic salary + DA = ₹40,000 (joining a job for the first time; he has never had EPF before) Example 4: Already an EPF member